Short Term Loans

Short-term working capital loans provide fixed lump sums with an agreed repayment period of up to 2
years.

Such loans are repaid on a monthly or quarterly basis as agreed between the bank and the customer.

Interest is calculated at an agreed rate on the full loan amount or the principal outstanding.

Overdraft Facility

This is a flexible funding facility designed to fluctuate with working capital requirements.

Borrowers may overdraw their current accounts up to agreed borrowing limits, with interest calculated
on a daily basis on the amount outstanding at close of business each day and payable in arrears at the
end of the calendar month.

Foreign Currency Loans

Foreign Currency Loans

These loans are available to our exporting customers to enable them purchase produce or crops like
tobacco, rice, cotton, pigeon peas etc., locally and for export.

Loans are available against firm orders or against inward Letters of Credit as the case may be.

Construction Loans

These are term loans of specific amounts, for construction purposes. Such loans are for a stated period
of time normally exceeding 2 years but not more than 7 years.

Interest is calculated at an agreed rate on the full loan amount or the principal outstanding amount

Syndicated Loans

Reserve Bank of Malawi has set guidelines with regard to credit concentration and group or individual
companies' exposure. This means that the Bank cannot lend money beyond a certain limit. In such cases
NBM is capable of securing funds by involving other Banks either locally or internationally. Each bank
commits to contribute a proportion of the loan under the terms of a single loan agreement between the
lending syndicate and the borrower.
The syndicate lenders will agree on the pricing that normally includes Commitment and Arrangement
fees.

This facility can be negotiated through our Corporate Banking Office based in Head Office, in Blantyre
and satellite office in Lilongwe.

Finance for Exports

Pre-Shipment Finance

For exporting customers our Bank is able to provide immediate financing to enable such customers to
purchase produce locally, and prepare for shipment abroad.

A good track record of export business in tea, tobacco, cotton, sugar, coffee and other export products is
a pre-requisite to obtaining pre-shipment finance.

This finance is extended by way of an overdraft or short term loan, and may be extended in local
currency (Kwacha) or foreign currency, depending on availability of funds in the market.

Loans Against Trust Receipts

A loan against trust receipts enables our corporate customers to retain control of imported goods whilst
undertaking to pay the sales proceeds to the Bank.

Bonds & Guarantees

Tender Bond

Issued in support of customer's tender as assurance of the intention of the customer to sign the contract
if the customer's tender is accepted.

In the event of default (i.e. failing to accept the contract if awarded to the tenderer) the guarantor
provides within the limits of the guarantee to make payment of a stated sum of money to the
beneficiary.

Consumer Loans

Service/Product Target (Who Is The User In Mind)

Product Attributes/ Features: How Does The Product Work?

Min – MK100,000

Max – MK3,000,000, unsecured

Repayment amount not to exceed 30% of salary

Maximum repayment period of 36months

To be covered under bancassurance for death and permanent disability

Unsecured loan of up to MK3 million

Can be topped up after paying 50%

Second loan is accessible as long as repayment remains at 30% of net income

Can be repaid before expiry at no cost

Costs To Access The Product

Interest at RBM reference rate +11% pa

Processing fees apply

How To Access Product

Fill a credit application forms and ADV 4 forms

Submit latest payslip

Submit sketch map

Customer ID

Submit letter of undertaking from employer.

Utility Bill

Employer Guaranteed Loans

Service/Product Target (Who Is The User In Mind)

Designed to assist high net worth corporate customers to avail their employees with loans via the Bank
Pay- Day Loan

Service/Product target (who is the user in mind)

Salaried employees – middle and low income earners

Personal Vehicle Loans

Service/Product Target (Who Is The User In Mind)

Business and salaried customers who want to purchase brand new/ second hand and reconditioned
vehicles

Premium Gold Finance

PRODUCT DESCRIPTION

The Premium Gold Finance Scheme has been designed to assist middle to junior managers of corporate
customers being managed by the Corporate Banking Division Division and Retail Banking Division
Division and SME owners to fulfill their personal dreams and ambitions with top-quality financial
services.

Asset Based Financing Scheme

Service/ Product Target (Who is the user in mind)

Salaried and high net worth Customers who own property within city /town boundaries

Insurance Premium Finance

What is it?

Insurance premium Finance is a specially designed facility that aims at assisting our customers with
paying annual insurance premiums. The facility enables our customers (both retail and corporate clients)
to pay their insurance premiums in instalments rather than in one lump sum amount.